Welcome to the forum Kazzachick.

I'm sorry to hear that you're in this position and that your income has been affected. It must be a massive worry for you.

Have you spoken to the credit card providers about taking a payment break? They should offer assistance currently if your income has been affected by coronavirus.

Would you be in a position to make a payment into a trust deed at the moment? This debt solution depends upon being able to make a monthly payment while also staying on top of your household bills and expenses.

Kaccachick

I can completely understand your hesitation. A Protected Trust Deed is just one option to deal with debt and is classed as a statutory debt relief solution.

For someone to enter the process they must voluntarily agree to convey their assets to their trustee and the trustee has a duty of care to realise them for the benefit of creditors. There are mechanisms within the legislation to protect the family home but there are dependent on the equity within your property.

In addition, the trustee would have to work out a payment that is affordable each month based on the previous earnings of that individual.

Creditors are afforded a 5-week objection period whereby they can vote on whether they agree on your proposal or not.

COVID 19 has resulted in not only a health pandemic but also a financial one and there are certain categories of employment will suffer more than others once restrictions are eased.

It would be potentially unwise for you to consider a Trust Deed as I believe it will be difficult to work out future cash-flow until we go back into some sort of semi-living standards however it is something you may wish to consider further down the line.

The Scottish Government has recognised that this uncertainly with people considering debt solutions and has introduced emergency legislation and has extended its “time to think” moratorium from 6 weeks to 6 months. This moratorium basically prevents creditors from taking legal action to recover the sums due.

This would be an ideal time to speak to creditors are ask for a payment break.

Remember though, a Trust Deed will only be an option dependent on the equity position of the property and other options such as a Debt Payment Programme under the Debt Arrangement Scheme should also be explored.

Happy to discuss all available options with you

Thank you for the reply, I think I will hold off at the moment and see how things work out. Just getting very panicky .

That's completely understandable Kazzachick.

It's a very uncertain time for a lot of people at the moment, and especially so for the self-employed.

I think that's wise, Kazzachick. Creditors should be open to a payment break at the moment anyway and, as Paul mentioned, the statutory "moratorium" could be used if any of your creditors are not playing ball.

Fingers crossed things start getting back to closer to normal soon and an appropriate solution can be organised for you that is sustainable.